Most sellers had to lower offers for domestic aluminium scrap grades in Delhi and Mumbai on subdued demand for secondary alloys from domestic as well as overseas consumer markets.
Secondary aluminium alloy manufacturers rued about a significant drop in profit margin owing to almost 50pc hike in scrap prices compared to last year. Unlike last year, industries this year were allowed to function with due diligence despite the lockdown. But Secondary manufacturers have enough unsold product inventories are waiting to resume production at full capacities. Only once the domestic demand revives, which participants believe could happen by mid-July, will manufacturers ramp up production.
The weekly Davis Index for old sheet in Delhi settled at Rs138,000/mt del Delhi consumer Tuesday, down by Rs5,500/mt. Few participants reported bids at around Rs137,000/mt levels. Not all traders have reduced offers. The Davis Index for EC wire settled at Rs179,000/mt del Delhi consumer on Tuesday, down by Rs1,500/mt from a week ago.
The Davis Index for old cast (Purja) settled at Rs126,000/mt del Delhi consumer, down by Rs5,500/mt ($73.95/mt) from a week prior pressured by the tepid demand from the units exporting auto alloys to China and Japan. The Davis Index for aluminium utensils settled at Rs147,000/mt del Delhi consumer, down by Rs1,500/mt from prior Tuesday.
Trading was slow in Mumbai as traders were reluctant to lower prices and manufacturers stayed away from scrap procurement as they wait for the prices to drop in sync with the drop in aluminium contract on LME. The official three-month LME contract settled at $2,370.5/mt on Monday, down by $107.5/mt from a week prior.
The Davis Index for EC wire stood at Rs179,250/mt del Mumbai consumer, down by Rs750/mt from the week prior on the back of the weak demand from secondary manufacturers due to labour shortage and production cuts.
The Davis Index for Old cast (Purja) for Mumbai on Tuesday settled Rs126,750/mt del consumer, down by Rs5,250/mt from the preceding week and the index for the old sheet for Mumbai settled at Rs140,750/mt del consumer on Tuesday, down by Rs1,250/mt.
The weekly index for Mumbai’s aluminium utensils on Tuesday settled at Rs143,750/mt, up by Rs1,750/mt del Mumbai consumer